Business Models Overview

1Business Models - Overview

Business ModelsOverview

2Business Models - Overview

Why Business Models?

To articulate vague business ideas We want to distribute our music electronically We want to outsource our ICT support We want to form a joint venture with a movie-

making company

3Business Models - Overview

Why Articulating Business Ideas?

For common understandingFor common understanding

For analysis and evaluationFor analysis and evaluation

For ICT developmentFor ICT development

4Business Models - Overview

What does a Business Model Answer?

Which is our value proposition? How does our company create and market this

value? Which actors are needed to offer the value? What value do the actors offer each other? ...

5Business Models - Overview

A Business Model is not a Process Model

A business model focuses on the what – it identifies agents, resources, and exchanges of resources between agents

A process model focuses on the how – it deals with operational and procedural aspects of business communication

6Business Models - Overview

A Business Model is a Starting Point

For exploring business ideasFor exploring business ideas

For designing business processesFor designing business processes

For developing ICT solutionsFor developing ICT solutions

7Business Models - Overview

What is in a Business Model?

Actor Supplier Customer Resource Value object Value proposition Value transfer Value exchange Value port Economic event

Duality Reciprocity Compensation Commitment Contract Distribution channel Value chain Capability Trust Customer relationship

8Business Models - Overview

Perspectives of Business Models

External perspective Looking at a web of organisations

Internal perspective Looking from within an organisation

9Business Models - Overview

Viewpoint of Business Idea/Solution

WhoWho creates it?

WhyWhy is it created?

WhatWhat objects are in focus?

HowHow is it represented?

Business Value

Top management

See who will contribute, benefit and make a profit

ValuesActorsExchanges

BMOe3-valueREA, UMM

Business Process

Operational management

Understand how the business is carried out

ActivitiesInformationControl flow

BPMNUML activity diagram

System Architecture

IT department Understand how IT can support the business idea

HardwareSoftware

UMLArchitecture description languages

Business Models in Context - Viewpoints